Decision Making Process Of The Theory Of Organization

Decision Making Decision making process is a way to get a final choice on achieving goals or solving problems among several alternatives. In classical theory of organization, it was believed that only top managers perform as the decision makers. It regards the employees as ‘instrument’ (March and Simon 1993). However, In Simon and March’s view (1993), employees are not just instrument, they are indeed rational people that think, act, and decide on their own in organizations. The decisions they made not only are affected by their knowledge and information received, but also their ability to solve problems, attitudes, personal goals and values. Organization is a system that made up of many individual decision-makers. Therefore, in†¦show more content†¦In the past, people commonly believed in the ‘hierarchical descriptions of organization’ because its efficiency and it fits ‘more general cultural norms for describing social relations in terms of dominatio n and subordination’ (March and Simon 1993 Revisited). However, in Organizations, Simon and March (1993) contend that the ‘central unifying construct is not hierarchy but decision making, and the flow of information within organizations that instructs, informs, and supports decision making processes’. In order to identify how Simon and March develops the understanding of organization through decision-making, people need to understand why the classical theory is regarded as improper. The first point is the rationality. In classical method, the ‘rational man’ makes optimal choices with conditions that there are already several alternatives simply given with no reasons why it is obtained and consequences attached to each alternatives. The decision makers have their own preferences and choose the one they think to be most optimal. However, since not all consequences of alternatives are certain or can be predicted, and the conditions are too perfectly imagined, the classical theory of rational man involves difficulties. It cannot be imagined in advance what will happen to an organization, or how the environment will change, not everything proceeds under people’s expectations. It is not like during a dinner, several dishes are